Feb 12 2008
Fierce competition among financial services firms has seen interest rates increase on accounts offered to people saving for children or for their own future in the UK, it has been claimed.
According to Moneyfacts, the two recent reductions in the base rate of interest have failed to make the savings market any less attractive to consumers across the country.
In fact, the typical returns on investment offered by the UK's high street savings products would be higher than they were 12 months ago even if their providers decided to trim their headline interest rates by a quarter-point.
"With uncertainty surrounding stock market investments at present and many commentators predicting further rate cuts as we progress through 2008, there are likely to be many savers ready to take advantage of these opportunities," said Rachel Thrussell, head of savings at Moneyfacts.
The Halifax banking group recently suggested that levels of saving among the British population are likely to increase in coming months as the country's economic climate worsens.
